Naturalgas settled up 0.52% at 269.90 rallied sharply on Tuesday, as freezing temperatures in the U.S. Northeast was likely to boost near-term heating demand expectations. Updated weather forecasting models called for frigid temperatures across the eastern two-thirds of the U.S. through January 11. Temperatures in eastern states are forecast to be the coldest since the mid-1990s. In New York they are set to drop to minus 14 Celsius from a high of 13 Celsius on Monday, as the effects of the chill extend as far south as Florida. Bullish speculators are betting that the freezing weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption. Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.071 trillion cubic feet as of last week, approximately 16% below last year's unusually high level and nearly 9% below the five-year average for this time of year. Early withdrawal estimates for this week’s storage data range from 115 billion cubic feet to 160 billion cubic feet, compared to a drop of 126 billion cubic feet during the same week a year earlier. The five-year average change for the week is a decline of 131 billion cubic feet. The fresh 8-14 day outlook, Natgasweather.com reported that a mild snap will end around Jan. 14, when a fresh blast of cold air will sweep across the country. Technically market is under fresh buying as market has witnessed gain in open interest by 5% to settled at 13674 while prices up 1.4 rupee, now Naturalgas is getting support at 266.4 and below same could see a test of 263 level, And resistance is now likely to be seen at 275, a move above could see prices testing 280.2.

Trading Ideas:

Naturalgas trading range for the day is 263-280.2.

Natural gas rose as frigid temperatures across much of the U.S. were seen boosting demand for heating, while longer-range forecasts also supported.

Updated weather forecasting models called for frigid temperatures across the eastern two-thirds of the U.S. through Jan. 11.

Technically market is under fresh buying as market has witnessed gain in open interest by 5% to settled at 13674